Marketing Strategy Report for Woolworths Australia - HI5004

This report provides a comprehensive analysis of Woolworths Australia's marketing strategy. It begins with an introduction to the company, its products, and mission. The report then delves into the 5Cs framework (Customers, Company, Collaborators, Competitors, Context) to assess the internal and external environments, including SWOT, PESTEL, and Porter's 5 Forces analyses. The report explores Woolworths' data collection methods for understanding its target market and develops a value proposition and positioning statement. Finally, it outlines the 7Ps of marketing, offering recommendations for improving Woolworths' marketing tactics in the Australian market. The report highlights Woolworths' strengths, such as its brand recognition and loyalty programs, and weaknesses, like limited global expansion. It also discusses the company's collaborators, competitors, and the impact of external factors, including political, economic, social, technological, and legal influences.

Running head: MARKETING STRATEGY
Marketing Strategy
Name of the Student
Name of the University
Author Note

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Executive Summary
The report is based on Woolworths Australia and a marketing strategy has been developed for
the organization as well. The report is divided in to five issues where the last two parts are
recommendation for the company. The first part deals with the introduction of the company
and the products in which they are dealing. The second part deals with the 5Cs that will help
the company in analysing its strengths and weaknesses along with opportunities and threats.
The internal and external environment has also been analysed with the help of SWOT,
PESTEL and Porter’s 5 Forces.
The third part consists of the ways in which the company collects information from the
market so that it can be analysed and a proper target market can be set up. The fourth part is
inclusive of the value proposition for the company and its positioning statement for its target
audience. The last part deals with the 7P’s of marketing that needs to be taken up by the
company to improve its marketing strategy ion the Australian market.

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Table of Contents
Issue 1: Introduction...................................................................................................................3
Issue 2: 5Cs of Woolworths.......................................................................................................4
Issue 3: Data collection for the company...................................................................................6
Issue 4: Developing marketing strategy.....................................................................................8
Issue 5: Developing marketing tactics.......................................................................................9
Reference List..........................................................................................................................12

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Issue 1: Introduction
Woolworths Australia was established by Percy Christmas in the year 1924 on 5th
December in the Imperial Arcade located in Sydney. In the year 1927, the company launched
its second store in Brisbane, which resulted in the formation of a chain. The rapid expansion
of the company led to the launch of the store in New Zealand by 1930 and 16 other stores in
the region of Western Australia, New South Wales and Queensland. During the time of
depression the company survived due to its strong marketing policies that ensured that the
growth continued (Arli et al. 2013). The growth of the company continued and by the end of
2011, it was seen the company diversified its products and services all across Australia and
New Zealand along with the partnerships on a global basis. The company has gone in to a
partnership with Masters that has launched its e-commerce site in 2012 that is the largest
Australian Hardware and Home Improvement store. The company belongs to the retail
industry and is one of the largest retailing companies in Australia (Woolworthsgroup.com.au
2019).
The mission statement of the company is to build the business based on higher level
of integrity so that it can deliver quality and value to its customers in the best possible
manner. The slogan for the company is ‘Australia’s Fresh Food People’, which indicates that
ten company focusses mainly on providing the best quality of food to its customers. The
orientation of the company is that it serves the people of Australia with the products and
services that are demanded by them. This is reflected in their slogan, as they are mainly
focussed on delivering the best products to its customers so that their demands and needs can
be met (Byrne 2014).
The company provides various products such as different ranges of food products
along with daily use goods. The different range of products that are being given by the

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company allows the customers in giving a full shopping experience once they enter the store.
They can fulfil their everyday needs by purchasing the necessity and luxury items as well.
Most of the brands that the company has in its store are labelled along with their in-house
products that are of superior quality as well. The marketing strategy that is taken up by the
company enables them in selling both the labels in a proper manner (Burch, Dixon and
Lawrence 2013).
Issue 2: 5Cs of Woolworths
The 5Cs of marketing allows the company in understanding the different factors that
create impact with respect to the internal and external environment. The changes in the
business dynamics has led to the evolution of the process within the business context. This
particular tool helps the company in analysing the situation in the market in a better way so
that it can have a better understanding of the customers and the ability to serve the customers
in an efficient manner.
Customers- They are of utmost importance for the company so that it can result in increasing
the volume of sales. The size of the market and the potential of its growth needs to be
analysed by the company primarily so that the preferences and demands of the customers can
be understood. The company mainly serves the customers who belong to various background
and income levels, as the availability of different products cater to the various needs of the
customers. The company provides the products according to the needs of the customers so
that most of the products are available all throughout the year (Mishra and Modi 2016).
Company- It helps in assessing the strengths and weaknesses along with the threats and
opportunities that are present. The major strength of the company is that it is a well-known
brand in Australia and gas more than 900 stores all across the country. The employee strength
is also above 100,000 that enables them in giving attention to the details that are laid down by

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the customers. Another strength is that the company provides loyalty schemes to the
customers so that it can help in increasing the loyalty among them. The company also
provides private labels to the customers that are popular among them as well. The key
resources of the company is that it is an established brand known to the customers for a long
time. The goodwill and brand value in the Australian market is high due to the quality of
products and services that are offered by them (Ma, Wang and Shang 2013).
The weakness of the company is that the expansion on a global manner is limited, as
compared to its competitors that has affected its level of profits on a global context. Another
major weakness is that the presence of the e-commerce sites has affected the sales level to a
great extent as well. The opportunities present for the company is that it can promote its
brand through better level of advertising so that more number of customers can get attracted.
The growth of the company can be enhanced through mergers and acquisitions along with
franchises in developing countries so that there are opportunities in increasing the level of
profits (Katsikeas et al. 2016).
The threats of the company are the increase in the cost of the raw materials that is
affecting their food and non-food ranges. The impact is directly on the level of profit due to
the low margins. The recession that has taken place on a global manner is also hampering the
sales volume of the company to a great extent. Another major threat is the level of
competition that is being given by international retail companies such as Walmart due to the
huge amount of resources that are available to them (Tan and Sousa 2013).
Collaborators- The Company sources its ingredients from the farms directly that allows
them in retaining the fresh products, which in turn is provided to the customers. Farms like
Gibb Brothers, Bauer and Googa Farm Organics are some of the suppliers that provides the
fresh produces along with other suppliers to the company. Teys Australia is another supplier

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that has been supplying good quality meat to the company so that customers can enjoy the
product as well. The management of the company makes it a point to scrutinize the
relationship with the suppliers in a proper manner so that it can help in establishing the ‘Good
Buyer and Supplier Principles.’ This has resulted in increasing the supply of good quality
products in the market so that it can result in increasing the value of the brand in the
Australian market (Chari et al. 2014).
Competitors- The major competitors of the company in the Australian market are Tesco,
Aldi, Coles Group, Kohls and LIDL that are also under the retail industry. They have taken
up the strategies to provide the products at a cheaper price so that it can result increasing their
level of competitive advantage in the market as well. There are potential threats of entry as
well, as Walmart and Amazon are trying to enter the market. They have all the necessary
resources that will allow them in entering due to the huge amount of cash reserves they will
be investing in to the market (Iacobucci 2014).
Context- The external factors also affect the daily business of the company to a great extent.
There is political pressure on the retail market due to its duopolistic nature, which will have
negative implications on the company. From the economical aspect, the spending done by the
consumers are more than the average that is affecting the retailers of the country. The policies
and regulations for new entrants have also been eased out that is affecting the business of the
Australian retailers (Geding, Knudtzen and Bierre 2015). The poor relationship with the
suppliers are one of the social factors that is affecting the business as well. The technological
impact is the implementation of the SAP that will allow in merchandizing the system that will
increase the level of efficiency. The legal battles with Australian Competition and Consumer
Commission (ACCC) has resulted in losing out the cash reserves to a great extent by the
company. The company has also taken up effective environmental measures such as reducing

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the carbon footprint and encouraging use of energy efficient resources (Baker and Saren
2016).
Issue 3: Data collection for the company
Woolworths Australia needs to conduct proper market research so that it can help
them in understanding the needs and preferences of the customers in a better manner. The
major factors that help in setting the customers apart for the company needs to be identified
so that it can help in serving them in a better manner. The segmentation has to be done
according to the demography of the area as well as the products in which they are interested
so that it can result in increasing the volume of sales. The messages that will be developed by
the company should reach the target audience so that it can result in increasing the awareness
in the market as well (Baker 2016). The company also monitors the behaviour of the
customers on a real-time basis, as when they enter the stores, their behaviours are monitored.
This allows the company in understanding the type of products and services that the
customers are looking for so that the company can group it in to different categories. This
will allow the customers in having a better level of shopping experience. The use of Big Data
also allows the company in understanding the behaviour of the customers in a systematic
manner, as the data is mapped and enables the management in searching the specific options
in a better way (Burns, Bush and Sinha 2014).
The company also keeps a track of the customer records that allows them in grouping
the customers according to their needs and preferences. This allows the management in
keeping the particular products in different locations that will be profitable for them. The
referral schemes are also analysed by the company, as it maintains a logbook where the
information regarding the source is recorded. This allows in analysing the loyalty of the
customers due to their repeated purchase method. The analysis done by the company mainly

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showed that most of the customers are looking for durable products at a cheaper price so that
it can help in saving their money and solve the problems at the same time (McQuarrie 2015).
However, companies like Aldi, Tesco and Cole’s group are competitors for the
company, as they are providing the same products and services to the customers. The price of
the products are less than Woolworths that has led in decreasing their competitive advantage
in the market. This has led in attracting more number of customers towards their stores. The
context of the business is also changing for Woolworths due to the process of globalization
that has resulted in increased competition in the market. The company needs to adopt the
latest technologies so that it can result in increasing the level of efficiency in the market. The
competing companies are using the latest technologies as well as promoting their brands in an
efficient way that is attracting more number of customers. The promotional activities that are
being done also results in increasing the sales of the competing brands (Bailey 2014).
Woolworths also has different collaborators that helps in establishing their businesses
in a better way. The company has collaboration with different suppliers who help in sourcing
the best food products at a cheaper price so that the customers can also purchasing it a
discounted price (Bailey 2014). The collaboration has helped the company in sourcing the
products locally so that the sustainability of the Australian farmers is ensured as well. The
company has also entered in to partnership with Caltex group for supplying fuel in the
Australian market, which shows that the products and services are being diversified by them
as well (McQuarrie 2015).
Issue 4: Developing marketing strategy
Thus it can be recommended for the company that the target customers are those that
belong to different income levels especially the high income and the living standard measure
customers. The company will also be providing the facilities for customers of different age

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groups, as the range of products both food and non-food is huge. The customers who also
have a choice for garments will also be covered, as the stores offer various kind of clothing
accessories to both the genders. The company caters to customers who belong to the young
generation, teens as well as the older generation. This will allow them in covering a wide
range of products (Beare, Caldwell and Millikan 2018). The demand of the retail will also
increase due to this as well among the customers.
The value proposition of the company will not only depend on the price among the
customers, as there are other factors that are also considered by them such as the level of
experience they have in shopping as well as the trust in the brand. The return policies of the
products within the store will also attract the customers that will help in increasing the sales
volume to a great extent. The company should also cater to the needs of both the genders so
that it can help in providing a better experience to the customers who bring their family for
shopping (Kaynak 2014).
The products that are higher in demand needs to be kept at a convenient place so that
the customers do not have to find it. This will help in increasing the level of efficiency within
the stores. The easy availability of the necessary products will allow the customers in having
repeated purchases, as they become loyal towards the company. The prices also need to be
kept at a competitive manner so that it can attract the customers due to the better quality of
products that will be provided at that price (Boso, Story and Cadogan 2013).
The positioning statement for the company should be ‘low price, high quality’ that
will help them in increasing their level of sales. The advertising campaigns that will be done
by the company needs to highlight the quality of product that will be provided along with its
price. The customers also need to be given loyalty bonuses such as schemes and loyalty cards

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that will allow them in getting a higher percentage of discount as well. This will also result in
increasing the repeated purchases among the customers (Sargeant and MacQuillin).
Issue 5: Developing marketing tactics
The marketing mix will allow the company in understanding the policies and
strategies that needs to be taken up with respect to products, prices and other factors. It will
be explained with the help of 7P’s so that the company can have a clear understanding of the
different factors.
Product- The Company is one of the leading retailers in the Australian market and deals with
variety of products. It is inclusive of meat, vegetables, and packaged products along with
stationery items. This allows the customers in having a wide range of products from where
they can choose. The quality of the products that are being provided to the customers are
superior that helps in catering to their needs and preferences. They also provide private label
brands that allows the customers to purchase it as well (Leonidau et al. 2013).
Price- The price of the products in the company is low and is competitive in nature in the
Australian market. The prices are kept competitive intentionally so that it can help in gaining
a competitive advantage in the market. The products are divided in to premium and minimum
price tags so that it can provide a better shopping experience to the customers. The time of
the customers will also be saved due to the division of the products, as they can choose the
products according to their purchasing capacity. The company can also use the Shopping
Cards that can be given to the customers so that the purchases that are being done by them
can be tracked as well (Pulizzi 2014).
Place- The Company has stores located at various places that allows them in attracting the
maximum number of customers. There are convenience stores that are provided by the
management as well so that it can assist the customers as well The company needs to be

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available on the online platform as well so that the reach of customers can be increased. The
mobile application needs to be a user-friendly interface so that it can be used easily by the
customers. Some of the brands that are provided by the company are Woolworths Gold,
Woolworths Select and Woolworths Fresh apart from other brands. This will allow the
company in increasing its range of networks (Peattie and Betz 2013).
Promotion- The Company also needs to promote its products and services in an efficient way
so that it can spread awareness among the customers. The target market will get more amount
of information regarding the policies and procedures that are being launched by the company.
Offers and discount coupons should also be given to the loyal customers so that it can help in
increasing the chances of repeated purchases (Kaynak 2014).
People- The Company has a large employee strength that allows them in assisting the
customers in a better manner. The employees need to be provided with proper training so that
it can help the customers in having a better shopping experience. The people needs to be
hired in the company based on their level of skills and knowledge so that the efficiency can
be increased within the stores (Bailey 2014).
Process- The Company needs to quicken up its processes so that the time of the customers
can be saved. Woolworths need to provide the billing services with the help of supportive
staffs to the customers at a faster rate so that it can efficiently manage its customers. This will
help the company in increasing its efficiency as well (McQuarrie 2015).
Physical evidence- The stores of the company needs to have a good ambience and internal
environment that will attract the target customers. The products have to be placed in a
suitable location so that it can be located easily, which will help in increasing the efficiency
level (Leonidou et al. 2013).